Ubisoft Launches New Subsidiary for Major IPs with Tencent's €1.16B Investment

Ubisoft has announced the formation of a new subsidiary company, focusing on its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises. This strategic move comes with a significant €1.16 billion (approximately $1.25 billion) investment from the Chinese conglomerate, Tencent.

This news follows the recent release of Assassin's Creed Shadows, which has already surpassed 3 million players. The launch comes at a critical time for Ubisoft, which has faced numerous challenges including high-profile flops, layoffs, studio closures, and game cancellations. The company's share price hit a historic low, placing immense pressure on the success of Assassin's Creed Shadows.

The newly established subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to develop "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture.

Ubisoft outlined that the subsidiary will enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content releases, introduce free-to-play elements, and integrate enhanced social features. Additionally, Ubisoft plans to concentrate on the growth of its Ghost Recon and The Division franchises while continuing to elevate its top-performing games.

Yves Guillemot, Ubisoft’s co-founder and CEO, remarked, “Today Ubisoft is opening a new chapter in its history. As we accelerate the company’s transformation, this is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious. We are focused on building strong game ecosystems designed to become evergreen, growing high-performing brands and creating new IPs powered by cutting-edge and emerging technologies.

With the creation of a dedicated subsidiary that will spearhead development for three of our largest franchises and the onboarding of Tencent as a minority investor, we are crystalizing the value of our assets, strengthening our balance sheet, and creating the best conditions for these franchises’ long term growth and success. With its dedicated and autonomous leadership team, it will focus on transforming these three brands into unique ecosystems.

We are committed to building a sharper, more focused organization-one where talented teams will take our brands to the next level, accelerate the growth of emerging franchises, and lead innovation in next generation technologies and services, all with the goal of delivering enriching, memorable games that exceed players' expectations, and create superior value for our shareholders and other stakeholders.”

The new subsidiary will encompass the development teams for Rainbow Six, Assassin’s Creed, and Far Cry located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also manage Ubisoft’s back-catalog and any new games currently in development or planned for the future. This indicates that existing projects are secure, with no immediate plans for additional layoffs.

The transaction is slated for completion by the end of 2025.

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